SACRAMENTO, CA: The California Lottery has issued an RFP seeking a lead marketing and advertising agency for a contract with a nine-figure budget.
The lottery may require the winning firm to create earned media strategy and provide PR capabilities in the areas of media relations, crisis communications, event management and cross-cultural outreach, according to RFP documents.
The selected agency will be responsible for strategic planning, creative development and implementation of the lottery’s consumer marketing initiatives to raise awareness, elevate brand perception and maximize product sales. Its ultimate goal is to increase lottery profits and contributions to California public schools, according to the document.
The selected agency will help the California Lottery approach consumers in an “innovative way” and position the lottery for future growth, according to the document. The firm will also be expected to embrace a marketing and communications approach that addresses California’s diverse multicultural population.
The budget is up to $400 million over an initial five-year term. There was no breakdown between paid and earned media in the RFP documents.
Proposals are due by September 24. The California Lottery ideally wants a firm that has 50-plus staffers, makes annual revenue of over $20 million and is licensed to do business in the state, with a California office.
The California Lottery’s mission is to generate supplemental funding for public education through the responsible sale of lottery products, which are sold at 23,000-plus retail locations. Its product offerings include Scratchers games, jackpot games such as Powerball, Mega Millions and SuperLotto Plus, as well as daily games such as Fantasy 5 and Hot Spot.
During fiscal year 2023-24, the California Lottery saw sales exceed $9.2 billion and more than $2.3 billion earned for California public schools, and fiscal year 2024-25 sales are on pace to exceed prior years’ sales, according to the document.
The state expects to make a decision by May 11 of next year, with the contract to start two months later.
The California Lottery’s lead agency partner is David & Goliath, with subcontractor Horizon Media handling media planning and buying. David & Goliath’s contract expires May 18, 2026.